Category Archives: Communism Socialism Collectivism

“Back in February, we commented on the unprecedented hyperinflation about to be unleashed in the Venezuela whose president had just announced that he would expand the “weekend” for public workers to 5 days.

“About the same time, the WSJ announced that, ‘millions of pounds of provisions, stuffed into three-dozen747 cargo planes, arrived in Venezuela from countries around the world to service Venezuela’s crippled economy. But, instead of food and medicine, the planes carried another resource that often runs scarce there: bills of Venezuela’s currency, the bolivar.’”

“The 747 cargo shipments were part of the import of at least five billion bank notes as the government boosts the supply of the country’s increasingly worthless currency.”

“More planes were coming: in December, the Venezuelan central bank began secret negotiations to order 10 billion more bills which would effectively double the amount of cash in circulation[and thereby also reduce the real value (purchasing power) of Venezuela’s national debt by 50%]. That order alone is well above the eight billion notes the U.S. Federal Reserve and the European Central Bank each print annually—dollars and euros that, unlike bolivars, areused world-wide.“

Yes, it’s true that the U.S. dollar and the EU’s euro are different from the Venezuelan bolivar in that dollars and euros are “world reserve currencies” that are recognized and “used world-wide”. The bolivar, on the other hand, is primarily a “local” currency used and recognized almost exclusively within Venezuela.

However, it’s also true that dollars and euros are also virtually identical to Venezuela’s bolivar in that all three currencies are fiat, debt-based and intrinsically worthless. That equivalence is nothing to sneer at.

Why? Because dollars and euros might do better than bolivars today, but that won’t always be so. Venezuela is giving the world yet another lesson on the inevitable fate of fiat currencies: hyperinflation and national ruin.

Bernie Sanders is the junior US Senator from Vermont. He’s a member of the Democrat Party and an avowed socialist. He’s a balding, white-haired gentleman and 74 years old. He’s nobody’s idea of a left-wing, radical revolutionary.

When Senator Sanders announced his candidacy for the Democrat nomination for President last May, it seemed to be a fool’s errand. Hillary Clinton seemed virtually unstoppable.

My first reaction to his candidacy was, “Awww–isn’t that cute? An elderly, white-haired socialist is running for President. Gee, it’s really true; anyone can grow up to run for President in the USA. Is this a great country, or what?”

Of course, I didn’t believe Bernie had a chance in heck of winning the Democrat nomination or even raising any funds. I kind of expected him to campaign from his walker, make a brave show of it, take a nap and quickly fade from the campaign.

Government Squeezes the Savings–and Independence–Out of People[courtesy Google Images]

Reuters published “India’s ‘gold monetization’ scheme could have a big impact on global demand”. According to that article:

“Last week the Indian government approved the so-called gold-monetization scheme . . . [by] creating a system in which Indians holding private gold will be able to deposit it at banks—and then earn interest on their bullion holdings.

“The government plans to then make the deposited gold available to buyers across India. The aim is to reduce gold imports from outside the country, which run at nearly 1,000 tonnes yearly.

“India’s cabinet also approved a ‘gold bond’ program in which citizens will be able to buy interest-bearing bonds backed by gold, rather than owning physical gold.

“Estimates are that private citizens across India hold tens or even hundreds of millions of ounces of gold—which could become available to the banking system, if the monetization program is well received.”

India’s current GDP is about $2 trillion per year. Thus, India currently spends 2.1% of its annual GDP purchasing more gold from foreign sources. That’s 2.1% (more or less) last year; 2.1% this year; 2.1% next year. Note that US economists hope that the US economy will grow by 3% annually. Compare that 3% hope to India’s 2.1% annual drag on their economy due to purchasing foreign gold. You can see that 2.1% is a significant expense for an economy the size of India’s and cause for governmental concern.

“In the midst of remarks about preschools, minimum wage and pay equality for women, President Obama made a comment about stay-at-home moms that has left many mothers fuming.

“Speaking at Rhode Island College in Providence, Rhode Island, on Friday, the president made a statement that sounds as though he wants the government to discourage mothers from staying home with their children and send them to preschool instead.

According to Obama,

“Sometimes, someone, usually mom, leaves the workplace to stay home with the kids, which then leaves her earning a lower wage for the rest of her life as a result. And that’s not a choice we want Americans to make,” Obama said. “So let’s make this happen: By the end of this decade, let’s enroll 6 million children in high-quality preschool, and let’s make sure that we are making America stronger.”

Kirby is the first man I’ve heard speak on the subject of derivatives who seems to know what he’s talking about. But more, he’s one of the very few people who has a coherent understanding of what’s going on the world–deindustrialization of the west; disarming of America; violence in Ukraine, Syria, Iraq and Gaza; financial fraud; creation of regional entities entities like the North American Union–the orchestrated creation of chaos leading towards global government.